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Cerberus Capital Management, the US distressed debt and private equity firm that is taking over carmaker Chrysler, is eyeing a bid for a UK leisure chain in financial trouble, according to a source close to the situation.

Cerberus, which also provides asset-backed loan financing to indebted companies, is understood to be one of more than 20 potential bidders for Esporta, a chain of fitness clubs previously owned by UK private equity firm Duke Street Capital.

An offer from Cerberus would mark the second time in three months it has bid for a company previously owned by Duke Street, after it agreed to acquire insolvent household chain Focus DIY for £1 (€1.47) in June.

Other interested parties include Duke Street Capital itself, rival buyout houses and special situations firms, and two providers of integrated finance, a type of hybrid funding combining debt and equity from a single source.

Duke Street sold Esporta to Syria-born investor Simon Halabi in February, but the company has faced difficulties in recent months.

Bell Leisure, Esporta’s holding company, was forced into administration two weeks ago in the wake of weak financial performance.

Halabi paid Duke Street £470m for the leisure chain, using debt funding from Société Générale. According to deal sources the business had been leveraged with £330m of debt through Société Générale’s property division. Duke Street also supplied a £30m loan note to finance the sale.

Société Générale planned to syndicate the debt in the secondary credit market following the deal but struggled after chief executive Neil Gillis and finance director Michael Ball resigned.

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Sources with knowledge of the situation said that the two men had not been offered a stake in Esporta by Halabi following the takeover. Gillis is understood to be in talks with Duke Street Capital, among others, over potentially returning to work at Esporta, which has been losing subscribers since Halabi bought it.

Grant Thornton which is undertaking the administration of Esporta together with the company’s long-term adviser Lazard, said it was considering a number of options for the company which include a restructuring, sale or partial sale.

Grant Thornton declined to comment on details of potential bidders. Cerberus could not immediately be reached for comment.